Dubai Investment FAQs
All your questions answered.
Frequently asked questions
What is a transfer fee?
A transfer fee is payable if you transfer your property to someone else. It is an administrative charge levied by the primary developer.
Do you get a residency visa if you buy a home?
With the new long-term visa, investors in a property value of AED 5 million or more, 5-year visa is granted. The renewable 10 year-long visa is for investors setting up start-ups, businesses or branches of their companies of valued AED 10 million or more as long as non-real estate investments are not less than 60% of the total investment. It also applies to spouses and children, with conditions. The UAE announced a new law that provides a 5-year residence visas for retired expatriates with the possibility of renewal for those who wish to stay longer.
Do I have to pay tax on Dubai property if I am resident abroad?
No, you don't have to pay tax if you are a resident abroad. You only pay if the Dubai property is designed for living in, such as your own home, and student and employee accommodation. Then it is considered residential and exempt for VAT purposes. However, 5% VAT applies to commercial properties.
Is there a penalty payable to the property purchaser if an off-plan project is not completed on time?
Typically, developers delay the staggered payment schedule if a property is not completed on time.
What is driving real estate demand in Dubai?
a) Liberalisation of the real estate sector - expats can now own property
b) High tax-free yields on freehold property rental
c) Globalisation and its effects on property prices in metropolitan cities worldwide
d) Favourable interest rate environment
e) Mortgages & homeowner finance available
f) Granting of "permanent" residency upon purchase of freehold properties
g) Great Value - Real estate land & apartment valuations are cheap compared to international prices
h) Conducive lifestyle: safe, tax haven, secondary and tertiary home for international buyers
i) Dubai's robust economic growth p.a.(GDP)
j) Dubai's robust population growth p.a.
k) Large mid-income population bracket with high disposable income
l) Dubai is the regional entrepôt & tourism center
m) UAE is an open, welcoming & tolerant state with investor-friendly business policies
What is freehold property?
The owner of a freehold title of real estate enjoys the most superior form of private property ownership. A freeholder is considered to be the absolute owner of the land and buildings comprised in his title; he has the right to occupy, use and enjoy his property forever (“in perpetuity”) or until he transfers the title to a new owner, and his heirs are entitled to inherit his title upon his death.
What is the purchase process?
What are the maintenance and parking charges?
Service charges, AC and sinking fund is charged per sq. ft. with rates starting from AED 2 per sq. ft. As for parking, it is paid yearly per bay/slot and starts from around AED 1,000.
What is the average size of different units?
One Bedroom - Size approximately 716 sq.ft.
Retail - Size varies, upwards and downwards of approximately 500 sq.ft.
Selling your property?
Can a Tenant terminate his contract during the Tenancy Period?
Yes, a Tenant can terminate the contract, provided the Tenant will notify the Landlord ninety (90) days in advance and ensuring all the utility bills should are settled.
What are the payments the tenant need to make once agreed in leasing a Property?
The Tenant has to pay the agreed Annual Rent depending on how many cheques both parties agreed with, the Security Deposit, the Commission of the broker, deposit for DEWA and Empower(if applicable) and Ejari Registration.
What are the required documents needed to list a Property with Your Place?
The Landlord shall provide the Title Deed, Landlord's valid Passport and Residence Visa copy, if mortgage, Bank Statement and copy of Mortgage and DEWA Account
Does the Tenant needs to register his Tenancy Contract with Ejari?
Yes, the Law clearly states that the Rental Committee shall not consider any claims unless the lease is registered with Ejari.
What is DLD?
Dubai Land Department - DLD is a government agency that provides necessary legislation, organisation, and services for any real estate transactions in Dubai.
What is RERA Dubai?
What is DEWA Dubai?
DEWA is short for Dubai Electricity and Water Authority that handles water and electricity supply in Dubai. It provides citizens and residents with a continuous and reliable electricity and water supply.